European Union (EU) leaders have reached a multitrillion-euro deal on a coronavirus recovery package after a heated five-day summit.
The bloc announced Tuesday that it will borrow the money from financial markets, the first time the 27 states have done so as a collective. In total the EU recovery plan is worth 750 billion euros ($857.33 billion) in grants and loans.
They also agreed on their related 1.1 trillion euro ($1.3 trillion) 2021-2027 budget, bringing their combined spending to 1.8 trillion euros ($2 trillion).
“This agreement is a signal that Europe is capable of taking action,” European Commission President Ursula von der Leyen said during the announcement.
Clashes during negotiations came primarily from less-affected states — such as Austria, Sweden, Denmark and Finland — who argued that the aid to southern states was too generous, and should instead come in the form of loans. The nations, called “frugals,” have signaled they will continue to use their negotiating power in future decisions.
“There were a few clashes, but that’s all part of the game,” said Dutch Prime Minister Mark Rutte told Reuters.
According to the wire service, French President Emmanuel Macron at times lost his temper with frugals during negotiations. Polish Prime Minister Mateusz Morawiecki reportedly called them “stingy, egotistic states.”
The agreement now goes to the European Parliament where it must be ratified by all EU states.
Earlier this month EU economists predicted the bloc’s economy will contract more than initially expected due to coronavirus-related lockdowns as their summer economic forecast paints a significantly grimmer picture than their spring forecast did.